Sales and Use Tax Collection by Remote (Out-of-State) Sellers
The United States Supreme Court recently ruled in South Dakota v. Wayfair, Inc. that a state can require out-of-state sellers without a physical presence in that state (i.e., remote sellers) to collect and pay sales or use tax on sales delivered into the state.
After the Wayfair decision, the Utah Legislature passed SB 2001, Online Sales Tax Amendments, which expands the sales tax responsibilities of remote sellers.
SB 2001 requires a remote seller to collect and pay Utah sales tax if, in either the previous or the current calendar year, the remote seller:
- receives gross revenue of more than $100,000 from the sale of tangible personal property, any product transferred electronically, or services for storage, use, or consumption in Utah; or
- sells tangible personal property, products transferred electronically, or services for storage, use, or consumption in Utah in 200 or more separate transactions.
The requirements of SB 2001 are effective for sales occurring on or after Jan. 1, 2019.
Remote sellers can register for a Utah sales tax license using any of the following methods:
- Use Taxpayer Access Point at tap.utah.gov. This system will be available October 1, 2018.
- Mail or fax paper form TC-69, Utah State Business and Tax Registration, available at tax.utah.gov/forms.
- Register for Streamlined Sales Tax member states, including Utah, at sstregister.org.
Note: SB 2001 also repeals the 18 percent seller discount Utah offered remote sellers who voluntarily collected and paid Utah sales tax. The repeal is effective for sales occurring on or after Jan. 1, 2019.